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Your firm is offered the following investment opportunity: In exchange for $50,000 today, it will receive 2,500 shares of stock in the Ford Motor Company
Your firm is offered the following investment opportunity: In exchange for $50,000 today, it will receive 2,500 shares of stock in the Ford Motor Company and 10,000 euros today. The current market price for Ford stock is $14 per share and the current exchange rate is $1.13 per . Taking this opportunity will,
A) increase the value of your firm by $3,700
B) decrease the value of your firm by $3,700 Page 2 of 7
C) increase the value of your firm by $3,800
D) leave the value of your firm unchanged
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